Marginal Propensity to Save (MPS) is the proportion of additional income that a consumer saves instead of spending on consumption. It is calculated as 1 minus the Marginal Propensity to Consume (MPC). MPS is an important indicator of an economy's potential for investment and growth.
A comprehensive guide to understanding the Marginal Propensity to Save (MPS), including its definition, calculation, importance in economic theory, examples, and its impact on macroeconomic policies.
